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What was the reason behind banking crisis during 2005-2010?

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Question added by Sumin Dhakal , Personal Secretary to the Minister of Finance , Government of Nepal, Ministry of Finance
Date Posted: 2014/08/27
Jaquelin Becerra
by Jaquelin Becerra , Group X Instructor , University of California San Francisco

A big snowball effect of poor and unstructured underwriting starndards, leading to bad credit decisions being made lead to the downfall of the economic crising from 2005 - 2010.  In simple tems buying falsely identified Mortgage Backed Securities lead to the financial crisis.   

 

R.NARASIMHAN RANGARAJAN
by R.NARASIMHAN RANGARAJAN , General Manager - Retail Banking , Bank Sohar

There are many reasons like Subprime Crisis, Stock Market Bubble, Commodity price volatility, Real estate Crisis, etc.

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